Tsys trading higher into the........>

US TSYS SUMMARY: Tsys trading higher into the bell, volume (TYU 1.65M), curves

mixed; 5's30's up but remain below 30.000 (+.166, 29.529) as 2's10's and 2's30's

remain lower; Data today started with Aug Empire MFG, Retail Sales, non-farm

prod., and unit labor costs where all came in stronger than expected, Tsy

ultimately ignored the release; July Industrial prod. missed expectations while

business inventories came in line with expectations; Barclays are bearish the

2Y(TU), 5Y(FV) & 30Y(WN) calendar future rolls, "given persistent long asset

manager positioning". Positioning in WN "is at recent high"

-Headlines today,"*QATAR PLEDGES $15B IN DIRECT INVESTMENT IN TURKEY:

ANADOLU-BFW", followed by "*USD PARES GAINS VERSUS EUR, AUD, GBP AFTER REPORT ON

QATAR-BFW"

-DXY has reversed lower on the session (-.068, 96.663, 96.984H/96.657L);

Equities fell today (emini -26.00, 2,815.00), US$/Yen lower (JPY -0.52, 110.63);

West Texas Crude (WTI -2.03, 65.01); Gold weaker (XAU -17.82, 1176.30); Tsy

cash/ylds: 2Y 100-01 (2.604%), 5Y 100-03.25 (2.726%), 10Y 100-05 (2.855%), 30Y

99-16.5 (3.024%).